M&G Cautious Multi Asset Fund

A fund for all seasons

If you’re unsure what economic predictions and stockmarket forecasts mean for your investments, it could be wise to choose an investment that’s already well diversified such as the M&G Cautious Multi Asset Fund. The fund is designed to deliver competitive returns across different market conditions, by identifying attractive investment themes and investing in a broad range of assets.

Fund manager George Tsinonis seeks to identify themes, asset classes, regions, sectors and investment styles that can help maximise the fund’s return. He has the ability to actively adjust the weightings of asset classes according to these themes (within regulatory guidelines) so that he has exposure to the best performing assets, while avoiding underperforming areas.

As well as being able to invest in equities, fixed interest and cash, George is able to invest in other asset classes such as commodities and commercial property. Although commercial property has suffered through the recent recession, it now appears much more attractive. George uses his expertise and experience, along with M&G’s extensive resources, to identify what he believes will be the best performing asset classes and invests accordingly.

The flexibility of the fund, which enables George to invest in a broad range of lowly correlated assets, can help to reduce the fund’s volatility and one of George’s key objectives is to ensure that the fund’s risk profile is suitable for the cautious investor.

Why choose the M&G Cautious Multi Asset Fund?

• The M&G Cautious Multi Asset Fund offers more than traditional cautious managed funds – more diversification, more flexibility and more expertise.
• The fund is ranked in the top 10% of the IMA Cautious Managed Sector over the past three years, and since it was launched in February 2007.
• Fund manager George Tsinois runs the fund as part of a multi-asset team which works together to determine the portfolio’s asset allocation between the various securities, as well as the fund’s geographical spread.
• George has the full flexibility (within regulatory guidelines) to invest across asset classes according to his conviction as well avoid those areas that he believes will perform poorly.

How has the M&G Cautious Multi Asset Fund performed?

• Since its launch, the M&G Cautious Multi Asset Fund has achieved a return of 15.8%, outperforming its sector, the IMA Cautious Managed Sector, by 15.9%.

Please remember that you should not base decisions on past performance, prices may fluctuate and you may not get back your original investment. The fund has a varying risk profile as it is exposed to various asset types, each with their own risk profile. Overseas shares and bonds may be affected by currency exchange rates.

Source of all performance figures: Morningstar Inc., and M&G Statistics, bid to bid, net income reinvested, Sterling Class A Shares as at 30 July 2010.